NEW DELHI: LIC Housing Finance’s June quarter performance is indicative of the prolonged pain in the real estate sector due to the pandemic even as the company is battling increasing stress on its books.
The housing finance company has reported a massive 81.2% drop in net profit to Rs 153.44 crore in the quarter ended June 30, 2021 on higher provisions as delinquencies increased on developer loans.
Its provisions for expected credit losses stood at Rs 4,727 crore as on June 30, up 77% from Rs 2,669 crore a year ago. The weakest part of the loan book remains the developer loans portfolio which grew by just 6.55% y-o-y.
For LIC Housing Finance, the share of developer loans stood at 6.7% as of June, lower than 7% last year as the lender has turned cautious on these loans over the past few quarters. The individual loan portfolio, on the other hand, stood at Rs 2.17 lakh crore as against Rs 1.95 lakh crore, showcasing a growth of 11%. Of the individual loans, the home loan portfolio registered a growth of 13%. Total loan portfolio stood at Rs 2.32 lakh crore, up 11% year-on-year, the company said.
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